Bill C-38 passage removes foreign ownership restrictions for smaller Canadian telecommunications companies
Toronto – July 5, 2012 – TeraGo Inc. (TSX: TGO, www.terago.ca) today announced that with the passage of Bill C-38, foreign ownership restrictions in place for smaller telecommunications companies, including TeraGo, have been removed. As a result, the Company is proceeding with the automatic conversion of approximately 3.6 million issued and outstanding Class A Non-Voting Shares into Common Shares on a one-for-one basis, in accordance with the Company’s share articles.
On June 29, 2012, Bill C-38, the federal government's omnibus budget bill, received Royal Assent. Bill C-38 includes amendments to the Telecommunications Act (Canada) that exempts companies, including TeraGo, with less than a 10% share of Canadian telecommunications revenues from foreign investment restrictions.
As of May 4, 2012, there were 7,673,768 Common Shares and 3,633,474 Class A Non-Voting Shares.
TeraGo has notified the holders of the outstanding Class A Shares that it has commenced with the share conversion process.
About TeraGo Networks
TeraGo Networks Inc. provides small and medium sized businesses with carrier-grade wireless broadband, data and voice communications services. The national network service provider owns and manages its wireless IP network servicing more than 6,300 customer locations in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and is a wholly owned subsidiary of TeraGo Inc. (TSX: TGO). More information about TeraGo is available at www.terago.ca.
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